Arla Foods Annual Report 2020
Management Review
Our Strategy
Our Brands and Commercial Segments Our Responsibility Our Governance
Our Performance Review Our Consolidated Financial Statements
Our Consolidated Environmental, Social and Governance Data
HIGHLIGHTS
The strong dedication from farmer owners and employees, close collaboration with customers, and our diverse and
resilient business enabled us to continue our sustainable growth while quickly adapting to the new reality defined
by Covid-19. We grew our brands in most markets, implemented Climate Checks on farms, and entered the market for
plant-based products, while continuing to deliver our transformation and efficiency programme, Calcium, and maintaining
a steady flow of products in all our markets.
ADAPTING FAST
TO NEW DEMAND
Extraordinary circumstances call for
extraordinary solutions. While retail faced
increasing demand from consumers
lunching and cooking at home, our
foodservice business was highly impacted
by lockdowns of restaurants, cafés, hotels
etc. A strong cross-functional collaboration
made it possible to quickly shift products
from foodservice into retail as well as to
accelerate our digital marketing and
e-commerce focus. This was possible due
to the agility of operations and markets
and the resilience of our organisation,
supported by a strong collaboration with
our customers and commercial partners.
15% ro
SOYA
ARLA EMPLOYEES
WALKED THE EXTRA MILE
Since the beginning of the pandemic,
employees across the entire company
worked hard to uphold a steady flow of
products to consumers all over the world.
It took a massive effort to adjust routes,
milk allocation and production to meet the
spike in products for in-home consumption.
Huge extra amounts of ingredients and
packaging materials were sourced in a very
short time, and logistics did a tremendous
job delivering the products to stores with
changed time schedules and delivery
procedures. The production capacities at
some sites were tested, particularly at
Holstebro Dairy from where a record-high
86 trucks of LurpakⓇ products were
shipped to the UK in one week.
ARLA FARMER OWNERS
KEPT PRODUCTION GOING
Like for everyone else, it was a challenge for
Arla's farmer owners to balance work and
personal life during lockdowns, where home
schooling of children, keeping employees safe
and finding new ways of interacting with
business partners required extra resources.
Despite these circumstances, our farmer
owners managed to keep up milk production,
while installing their own safety measures for
employees at the farm. The farmer owners
also managed the challenge of keeping the
cooperative democracy alive by shifting to
online meeting formats during the pandemic.
7 ARLA FOODS ANNUAL REPORT 2020View entire presentation